Does an Ivy League Education Amount to Higher CEO Pay?

Abstract:

The issue of high Chief Executive Officer (CEO) compensation has attracted much attention among researchers in recent years. One study reports that the average CEO salary for an S&P 500 firm in 2006 was $14.8 million. In addition, many Ivy League graduates move on to the executive offices of America's top corporations after having spent over $50,000 per year on tuition. This investigation examines whether having a degree from an Ivy League school is associated with higher CEO compensation. I find that, after controlling for other factors, an Ivy League education is not associated with higher total compensation. Further investigation shows that having an Ivy League degree is associated with marginally higher salary and marginally higher "other" income, but is also associated with significantly lower stock-based compensation.